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Latin America Investment News on Viva Tropical

Wacky But True: El Salvador Establishes Tax to Care for Traffic Accident Victims

Article Summary:

Cross El Salvador’s border and you will be paying a tax to care for those involved in traffic accidents. The border tax has importers and exporters up in arms, claiming it adds additional costs to an already highly competitive market.

Photo Credit: Travelpod

Original Article Text From el Salvador:

American Exporters Fonat reject payment

The Federation of Chambers and Associations of Exporters of Central America (Fecaxca) adds to the productive sectors, commercial, exporters and importers of the isthmus against the decision of the Government of El Salvador to establish the tax for the Care of Traffic Accident Victims (Fonat).

The company considers that a tax border traffic, which directly affects the competitiveness of a regional market in the process of development and also represents the second largest export market for each of the Central American countries.

“This unilateral action contravenes commitments Trade Agreements signed with other countries and regions of the world, where one of the key requirements is to strengthen the regional integration process to achieve an effective customs union to facilitate the free flow of people and goods by Central throughout, “says the union through a statement.

The union recommends that the Secretariat of Central American Economic Integration (SIECA) ruling on the matter.

Fecaxca believes that this measure should turn back, as they say increases in product costs of imports, exports, tourism, services, for companies and also reduces regional competitiveness.

They consider it a tax thoughtless, affecting trade throughout the region. They claim that each insurance carrier and handles Fonat own and is an additional expense for the same purpose.

“In any case, such a measure should have been consulted in advance of the sectors involved are those carriers, exporters or importers” emphasizes the company.

They also request their respective governments through the Council of Ministers Forum Economics and Trade require the Salvadoran government to repeal this tax, then claim that the scope can cause a setback in the progress of the integration process so far achieved.

Formerly the American Federation of Transport (Fecatrans) also rejected the measure on the grounds that affects trade flows and raises transport costs and therefore the operation of thousands of businesses in the region.

Carriers expect a reform that waives therefore argue that already have insurance that covers the entire region.

Link to Original Article:

From el Salvador

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